Greetings and welcome to the Second Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, August 5, 2020. I would now like to turn the conference over to Kevin Karas, Chief Financial Officer. Please go ahead.

Thank you, Christy, and welcome everyone to National Research Corporation's 2020 Second Quarter Earnings Call. Again, my name is Kevin Karas and I'm the Chief Financial Officer. Before continuing, I would like to review conditions related to any forward-looking statements that may be made as part of today's call. This conference call includes forward-looking statements related to the company that involve risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the facts that could affect the company's future results, please see the company's filings with the Securities and Exchange Commission. Before reviewing second quarter 2020 performance, on behalf of all NRC associates, I would like to extend our heartfelt thank you to our customers and frontline caregivers around the world who continue to work tirelessly to save lives and keep communities safe during the COVID-19 pandemic. As we are all aware, this public health crisis continues to have an extended financial impact on many sectors of the economy, including healthcare. We have no unique perspective which would allow us to forecast the depth, duration or specific impact on our clients or on NRC Health. Given this uncertainty, our only assumption is that the company's sales, revenue and margins are unlikely to follow the growth trends of the past. Regarding our Q2 performance, Recurring Contract Value at the end of the second quarter of 2020 ended at $142.8 million, representing 11% growth over the same period in the prior year. Healthcare system clients, with agreements for multiple solutions, represented 28% of our client base at the end of second quarter of 2020, up from 26% at the same time…

[Operator Instructions] Our first question comes from the line of John Lewis with Willis Investment Counsel. Please go ahead, your line is open.

Good morning, Kevin. I appreciate you taking the question. I was just curious if -- with you guys giving complementary services to some of your customers are there any risks in the receivables that they may not be collected?

Yes. Thanks, John. That's a good question. We did see an increase in our accounts receivable day sales outstanding at the end of the second quarter compared to our historical trends and part of the discussions with our customers were situations where they had requested deferred payment terms or an adjustment in payment terms, which we did agree to. So in cases where we felt that was appropriate, we made that accommodation. I would say that we expect that all of the deferred or past due amounts will ultimately be collected with minimal increase in our bad debt expense. We have not seen a situation where we have customers declaring bankruptcy or anything that would give us an indication that those accounts receivable will not ultimately be collected at a rate that we historically have seen. Just going to take a little bit longer.

Right, understood and that makes sense. So -- and two, more generally, could -- can you give me any more information just in trends that may be happening in the industry? Are we moving further toward consolidation brought on by COVID as some of the smaller players suffer more than the bigger players? Can you give me anything there?

Sure. I think the macro trends that we've been seeing for several years continue to hold true and potentially some acceleration with COVID. We have seen significant consolidation in the healthcare system market more and more. It's a smaller number of large healthcare systems that provide a large percent of the care across the country. And I cannot say that I have significant data points over the last 60 or 90 days whether there's been any increase in M&A, I think because providers have been so focused on just trying to prepare for COVID. But there could potentially, as a result of this -- there could be some acceleration in what was already a trend of consolidation.

That makes sense. I really appreciate you taking the questions.

Thank you. And there are no further questions at this time.

Okay, thank you, Christy. Just in closing, I'd say, it goes without saying that COVID-19 is far from behind us and again our thoughts and support are with those who are on the frontlines battling this pandemic. And with that, thank you for your time today and that's the end of the call.

That does conclude the conference call for today. We thank you for your participation. And ask that you please disconnect your line.